Revenue appeal dismissed by ITAT Mumbai for AY 2009-10 based on CBDT Circular The Appellate Tribunal ITAT Mumbai dismissed the revenue appeal for the assessment year 2009-10 as not maintainable based on a Circular issued by the ...
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Revenue appeal dismissed by ITAT Mumbai for AY 2009-10 based on CBDT Circular
The Appellate Tribunal ITAT Mumbai dismissed the revenue appeal for the assessment year 2009-10 as not maintainable based on a Circular issued by the CBDT. The Circular directed the revenue to withdraw appeals before the Tribunal if the tax effect on disputed issues is less than or equal to Rs.50,00,000. The Tribunal emphasized the binding nature of the Circular on revenue authorities and allowed for a miscellaneous application for order recall if exceptions were proven. The revenue's appeal was dismissed accordingly, with the option to file a miscellaneous application if warranted.
Issues: Jurisdiction of the Tribunal based on Circular issued by CBDT regarding tax effect on disputed issues.
In this judgment by the Appellate Tribunal ITAT Mumbai, the issue at hand was the maintainability of a revenue appeal for the assessment year 2009-10. The appeal arose from an order passed by the ld. Commissioner of Income Tax (Appeals)-3, Mumbai, against the order of assessment under section 143(3) read with section 147 of the Income Tax Act, 1961. The Tribunal noted that both parties agreed that the revenue appeal should be dismissed as not maintainable, in accordance with a Circular issued by the CBDT on 08/08/2019. This Circular directed the revenue to withdraw appeals before the Tribunal if the tax effect on disputed issues is less than or equal to Rs.50,00,000. The Tribunal emphasized that the Circular is binding on the revenue authorities. Consequently, the appeals filed by the revenue were dismissed as not maintainable, in line with the Circular.
Furthermore, the Tribunal stated that if the revenue could provide evidence that the case fell under exceptions outlined in the CBDT Circular, they could file a miscellaneous application for the order's recall. The Tribunal made it clear that in such a scenario, the order would be recalled. Ultimately, the Tribunal pronounced that the appeal filed by the revenue was dismissed as not maintainable. The judgment was delivered in open court on 07/09/2020.
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